The BiH authorities are still facing a set of measures from the Reform Agenda that must be implemented. Despite being late with the fulfillment of obligations, the fact is that the BiH are actually implementing the measures from Reform Agenda.
As the Delegation of the EU in BiH said, after consultations with the EU and the international monetary institutions the authorities in BiH agreed upon a set of reforms that have been recognized as a priority for the country.
“Many of these important reforms are in progress and directed at the solving of legitimate socioeconomic issues expressed by the citizens of BiH. A significant progress in the Reform Agenda is also necessary for the consideration of the BiH application for membership in the EU credible,” the EU Delegation stated.
The Reform Agenda can be divided into three mutually connected phases. The first round of important reforms was aimed at showing the commitment of authorities to the reform process.
“The list was long and certain delays were made. However, practically all reforms are either completed or launched, including the tough political measures such as the introduction of new labor laws in both entities, negotiations on collective contracts, budgets on all levels,” the EU Delegation stated.
In the first phase of reforms, a significant progress was made when it comes to business environment. Namely, both entities are in the process of acceleration of the procedure for the obtaining of construction permits and electricity connections, which has been an obstacle for foreign investors for a long time. In addition, work on the making of registers for all charges and reimbursements (including parafiscal charges) and the proposals for abolition, simplification and uniting of these taxes is almost completed. This should increase transparency and repress the possible corruption.
“There are certain positive moves in terms of industrial production, foreign trade and the number of employees. In addition to that, the MMF expect the growth to be above three percent and that investments increase over the coming several years,” it was stated.
In addition to that, during the first phase of reforms a cooperation environment has been created, which launched significant and new plans for harmonization of legislation among the entities. For instance, in July last year FBiH adopted the new Law on Business Societies, and the RS is about to adopt a similar law. On the other side, RS adopted the new Law on Bankruptcy in February this year, and the FBiH should do the same soon.
“Furthermore, there is a need for equalization of the environment for investments by eliminating the hidden subventions for many large enterprises in state ownership and something must be done regarding the unsustainable enterprises. Both entities have already identified these enterprises and undertook the first steps towards the solving of this problem,” the EU Delegation concluded.
(Source: Ervin Mušinović/klix.ba)
